Guidance Note: Definitions and Guidance on the Adjusted NET Liquid Assets (ANLA) Calculation

Summary

This guidance note explains how registered persons must perform the Adjusted Net Liquid Assets (ANLA) calculation, also called the Resource Requirement Calculation, required under the Codes of Practice for Fund Services Business, Investment Business and Trust Company Business. It clarifies scope, frequency, notification duties, and provides item-by-item definitions for the components of the calculation (assets, liabilities, expenditure requirement, and various risk requirements).

Who must calculate ANLA

General rule: All registered persons under the FSB, IB and TCB Codes must complete the ANLA calculation unless an exclusion applies.
Excluded: Managed fund services businesses serving only qualifying funds, registered banks (Jersey Banks and Jersey Branches, who instead file quarterly prudential reports), and certain trust company businesses that are 100% owned by a Jersey Bank or part of a qualifying affiliation (subject to JFSC consent or Code provisions).
Single calculation: A registered person holding multiple relevant registrations generally completes only one ANLA calculation, reflecting the most prudent circumstances, except where fund services business is combined with trust company affiliation participating membership.
Branches: Where a registered person operates in Jersey through a branch, the ANLA calculation must use the registered person's own management accounts or audited financial statements, not just Jersey branch figures.

Frequency and notification

Minimum frequency: ANLA must be calculated at least quarterly.
Increased frequency triggers: Monthly calculation is required if the ANLA position falls between 110% and 130%, or if an out-of-the-ordinary event materially adversely affects the registered person's financial position.
Investment business with risk exposure: Investment businesses with position, counterparty or foreign currency risk exposures must calculate ANLA daily, unless the JFSC grants a variance based on enhanced capitalisation or a strong compliance track record.
Fund services business with risk exposure: Fund services businesses with position, counterparty or foreign currency risk must approach the JFSC for guidance, and should expect to calculate financial resources monthly.
Below 110% notification: If a registered person notifies the JFSC that its ANLA is below 110% of its Expenditure Requirement, the JFSC expects a documented restoration plan and, in most cases, will require it to be submitted within 30 days of the notification; the JFSC may also impose conditions during the restoration period.

The remainder of the document is a detailed technical reference table defining how specific balance sheet and off-balance-sheet items (debtors, work in progress, related party balances, PII excess, subordinated loans, undrawn credit facilities, position risk, counterparty risk, and foreign currency risk) should be treated within the calculation. This is interpretive guidance rather than new binding obligations, intended to support consistent application of the existing Code requirements.

Key obligations

Registered persons subject to the FSB, IB or TCB Codes (other than exempted categories) must complete an ANLA calculation at least quarterly.
Registered persons must move to monthly ANLA calculations if their ANLA position falls between 110% and 130%, or after an out-of-the-ordinary event with a material adverse effect on their financial position.
Investment businesses with position, counterparty or foreign currency risk exposure must complete the ANLA calculation daily unless the JFSC has granted a variance.
Fund services businesses with position, counterparty or foreign currency risk must approach the JFSC for guidance on the impact on their financial resources calculation.
Where a registered person notifies the JFSC that its ANLA is below 110% of its Expenditure Requirement, it must generally submit a documented restoration plan to the JFSC within 30 days of that notification.
A trust company business wishing to rely on the 100%-Jersey-Bank-ownership exemption must apply in writing to the JFSC and the Jersey Bank must provide an acceptable letter of undertaking on financial support.

Applies to

fund services businesses, investment businesses, trust company businesses, registered persons under the FSB, IB and TCB Codes, banks (Jersey Banks and Jersey Branches, largely exempted)

Deadlines

within 30 days of financial resource notification: JFSC generally requires a registered person whose ANLA has fallen below 110% of its Expenditure Requirement to submit a restoration plan within this period.
quarterly: Minimum required frequency for completing the ANLA calculation.
monthly: Required frequency when ANLA is between 110% and 130%, after a materially adverse out-of-the-ordinary event, or generally expected for fund services businesses with risk exposures.
daily: Required frequency for investment businesses with position, counterparty or foreign currency risk exposure, absent a JFSC variance.